eFuels for Cars and Trucks

The CO2 emission standards for new passenger cars and vans as well as trucks is one instrument for reducing greenhouse gas emissions in the transport sector. We are convinced that a balanced mix of strict but achievable CO2 emission standards and a level playing field for all emission reduction technologies will have the most positive impact on our climate. To determine a technology's true contribution to climate protection, a vehicle's carbon footprint must ideally be assessed based on its entire life cycle. Including renewable fuels in CO2 emission standards is a first step towards a more holistic and integrative climate approach to transport.

Need for action: Taking renewable fuels into account

The CO2 emission standards separate the responsibility along the supply chain: Fuel suppliers are responsible for emissions from transport fuels from the original energy source (“well”) to the vehicle (“tank”). They are subject to regulations such as the revised Renewable Energy Directive (RED) and further regulatory requirements that essentially focus on the quantities of fuel consumed. Vehicle manufacturers (often referred to as Original Equipment Manufacturers, “OEMs”) are responsible for direct emissions from the vehicle, i.e. on the way from the tank to the wheels. The main element regulating emission reductions are the CO2 emission standards for new vehicles. OEMs have to fulfill a certain average fleet target for the yearly sold new vehicles. By not connecting these two areas, the EU legal framework leaves out significant environmental advantages and restricts the possible powertrain options for cars, vans and heavy-duty vehicles.

A Carbon Correction Factor combines vehicles and fuels

Building a bridge can be done by implementing a Carbon Correction Factor, which would reduce the CO2 emission of new cars, vans and trucks by the amount of renewable fuels that already exists the current fuel mix. For example, if 10% of renewable diesel is in the European fuel market the tailpipe CO2 value of a long-haul truck should be corrected from 55 gCO2/tkm to 49.5 gCO2/tkm.

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A joint letter to European decision-makers, signed by around 120 companies and associations as well as more than 90 scientists, also shows: Industry and scientific community agree that all climate-neutral options for action must be used in heavy goods transport.

Introducing a voluntary accounting system for renewable fuels

An option to offset the remaining CO2 emission is the introduction of a so-called crediting system for the renewable fuels, which has been developed on behalf of the German Federal Ministry for Economic Affairs and Energy (BMWi). Here, manufacturers can purchase credits from renewable fuel producers to reduce the carbon footprint of new vehicles. Advantages and cost estimations are conducted in this study. Switzerland will introduce a voluntary crediting system for OEMs from 2025 onward.

A crediting system for renewable fuels:

would offer more climate neutral choices for customers such as hybrid vehicles,
would lead to more CO2 reduction in comparison to electric vehicles only,
is a first step towards a holistic life cycle assessment of vehicles,
can’t undermine effectiveness and efficiency of existing provisions because it is voluntary,
considers only additional amounts of renewable fuels,
retains responsibilities, limitations, and sustainability criteria of the fuel industry,
is based on established procedures and institutions to verify fuel amounts,
offers more solutions and a safety net for the automotive industry – but also for the climate.

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